Unlocking Value Through Contract Transparency

Market: Oil & Gas  |  Solution: Contract Compliance  |  Customer: Oil & Gas Producer

 

Background

A natural gas producer expanded its operations with new wells and sought AEGIS to help manage the growing complexity of midstream agreements. The producer partnered with AEGIS for financial hedging and also relied on our expertise to confirm that its settlement statements matched the terms of its contracts.

 A natural gas producer expanded its operations with new wells and sought AEGIS to help manage the growing complexity of midstream agreements.

 

The Challenge

Midstream contracts are notoriously complex, often containing settlement terms and fuel deductions that are difficult to track. Small discrepancies in recoveries or fuel calculations can translate into large dollar impacts over time. Like many producers, the customer needed confidence that its contracts reflected fair terms and that payments matched the agreements in place.

 

Solution

AEGIS used Contract Compliance to reconcile contractual terms with actual settlement data. The team highlighted unusually high fuel charges and inconsistent NGL recoveries that did not align with plant operating modes. The analysis surfaced anomalies that gave the customer clear, data-backed insight into contract performance and uncovered missed revenue opportunities.

Results & Impact

The analysis revealed an opportunity to recover close to $1 million dollars tied to settlement statements, as well as nearly $4 million over two years in hidden inefficiencies related to fuel accounting. With this visibility, the producer gained both immediate financial recovery and valuable leverage for future contract negotiations. 

data
$1,000,000

Found tied to settlement statements

revenue insights
$4,000,000

Found in fuel accounting over two years

Why It Matters

Contract Compliance Dashboard

Contract transparency is essential in today’s energy market. By pairing technology with expertise from the team, AEGIS helps producers identify value hidden in the details of complex agreements. The outcome isn’t about assigning fault—it’s about ensuring accuracy in a timely manner, fairness to all parties, and stronger negotiating positions that directly improve the bottom line.  
 
This case study is not required to be and has not been filed with the Commodity Futures Trading Commission ("CFTC"). The CFTC does not pass upon the adequacy or accuracy of this commodity trading advisor disclosure. Consequently, the CFTC has not reviewed or approved this case study. See further disclaimer below.
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